The Consumer Price Index (CPI) report released by the National Bureau of Statistics (NBS) revealed an uptick in headline inflation for the ninth consecutive month in May 2020. Headline inflation rose by six basis points from 12.34% in April 2020 to 12.40%, in line with our forecast. Both sub-components of the index edged higher with the food index rising by 15.04% YoY (vs. 15.03% in April 2020 YoY) and the core index by 0.14% to 10.12% YoY. We, however, expect investors’ participation in the upcoming treasury bills auction to remain strong, despite the adverse impact of inflation on the real rate of return.
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